About this Show

Countdown to the Closing Bell

News/Business. Stock market updates. New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 130 (Fox Business)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
704

PIXEL HEIGHT
480

TOPIC FREQUENCY

U.s. 14, S&p 9, Us 7, China 6, United States 4, New York 4, Mark Mclaughlin 3, Cheryl 3, Charlie 3, Carl Icahn 3, Nicole 3, Mailer 2, Husqvarna 2, Starbucks 2, Gary 2, Spiriva 2, Jack Lew 2, Legalzoom 2, Ackman 2, Icahn 2,
Borrow a DVD
of this show
  FOX Business    Countdown to the Closing Bell    News/Business. Stock  
   market updates. New.  

    March 19, 2013
    3:00 - 4:00pm EDT  

3:00pm
siemens. answers. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. and make your business dream a reality. but maybe the problemn't a. isn't your lawn. introducing the all-wheel-drive mower from husqvarna. we engineered its unique drive system and dual transmission to handle hills& thick grass& and tough terrain& without losing traction or power the all-wheel-drive mower from husqvarna. challenge the impossible.
3:01pm
visit us online to enter the challenge the impossible promotion
3:02pm
cheryl: count gown to the couldn't down. attacks at the fore front adds jack lew talks to the chinese president. we talk to the palo alto ceo on profiting from protection. cypress worries continues to hit u.s. investors today, but is the correction an opportunity to load up your portfolio? dan chung tells you why you should run with the bulls. the ceos of two major airline make a case to dc to merge, can the airlines make your portfolio soar? one says the fundmentals point to yes. "countdown to the closing bell" starts right now. ♪ cheryl: i'm cheryl cheryl in for liz claman, the last hour of trading, and the markets are trying to make a comeback in this final 60 minutes. after cypress rejects the tax on
3:03pm
bank deposits, at its high, get this, the dow up more than 62 points today before making a 132-point swing to the downside. there's the dow. right now, down 24 points, a lot can happen in the last hour. a lot has happened during this session today. taking a look at the s&p. the s&p is moving further away from that record closing high, trying to get there, can't get there. the dow and s&p at this point on track of the first three day losing streak of 20 # 13 of the year. 1544 and 1565.15. we want to see on the s&p. two companies weigh on the s&p today. e lek tropic arts whose ceo stepped down after lowering guidance for the upcoming quarter, and cliff natural resources after goldman's lower iron ore outlook hurts, both big performers in 2012, both stocks down substantially right now. we got data today, more data, on housing, and the housing
3:04pm
recovery is moving forward as construction picks up. the good news coming out today, helping to lift markets, at least earlier op in the day, so a lot of information to digest during this trading day. look at the builders, moves higher on the data to miranda warning. kbhome, meritage, all new highs for you on your screen. a lot to go through. the floor show, traders standing by at the new york stock exchand teddy is at the new york stock exchain. seems to me, teddy, in the final hour, there was a spike in volatility. we have not seen the vix react in 2013, but, again, there seems to be tension, some nervousness, how do you read it? >> well, i think all of the above. listen, markets had january, february, great months, even december was a good month. we really haven't given any of the rally back. i suspect it's short term,
3:05pm
clearly, we're probably over board, if not way overbought. we're due for a rest no matter what the excuse. you know, i think we have to let the market run its course. i guess some of the gains here, and it doesn't look bad. it's mixed. you got maybe more red than green today, but the fact is it is mixed, and i kind of like the tape, and i think, ultimately, we're going higher, but maybe we have to do work in here. cheryl: an opportunity to move money armed and take profits in places you need it, move into cheaper buys, teddy, and that's certainly what seems to be happening in the market today. over to the cme, gary is substantial doubting by dissh standing by there. we were within two points friday of getting to the new record high, substantial pullback from that level, gary. what do you think of it? >> well, look at cypress. as soon as there was the issue in europe, look what happened in the past day and a half with the s&p. we've seen it fall off the highs. i don't think we're going to be seeing the numbers again in the near future.
3:06pm
it's time to start settling down, take another reading on it, we're close to the second quarter, ready to start in a few weeks. also, what we have to look at is what the fomc doing tomorrow? how will they take care of what's going on here? there's a lot going on affecting the s&p, the mini dow and nasdaq keep your eyes open. there's a lot to focus on. cheryl: there is, especially with commodities and dollar and the euro. i want to talk about that issue here, what we've seen the last two days is a flight to safety of the u.s. dollar, of treasuries even. elliot, at the same time, though, that could be an interesting story for oil as well and other commodityings like gold. >> well, gas is an animal its own, rallying slowly the last, you know, couple weeks, and $4 is vaguely interested for natural gas, but it needs to be higher, the $4.50 area before
3:07pm
it's worth looking at. crude's down, what, a buck-80? it's really just giving back gains from the last week. crude is up and down, same channel, same way natural gas, you know, and in terms of like any bull market run, you know every market has a pullback. there's no srb i've never seen a chart of any, you know, rally market that went straight up. you know, so there's going to be pullback days and advancing days. two steps forward, one step back. markets right now, and i think crude rallies from here, actually. cheryl: back to you comments on that net gas, there's a 15 month high on that gas, and major energy companies moving in, you think, eventually, elliot, that makes this a bullish contract and play. there's plenty gas across the country, we produce it, but when you have players in the nat gas
3:08pm
field, pun intended, that's when this goes up. >> oh, i agree completely. we need more uses for natural gas, end of the winter heating subpoena, coming into the summer, natural gas is not used. they use it to heat the pools, i suppose, but long term, people, the smallest vehicle you drive is a pickup truck powered by natural gas. if truckers and people use it as alternative fuel, then, yes, rally is inevident l because people come to the party, and, yeah, everybody buys, absolutely. cheryl: gentlemen, thank you for the floor show. good to see all ttree of you, appreciate it. >> thank you. cheryl: the markets, dow down 41 points. now, for the second day in the row the issue is cypress, worry about the mediterranean island we don't talk about; right? is it the beginning of a correction on the domestic front? what's that mean to u.s. investors? the next guest says it's another chance to buy into the markets. you know them well, ceo and
3:09pm
president joins me from new york in a fox bids exclusive. you are bullish on the economy. i want to be there, and there's a mixed bag here, unemployment, 7% to 8% range, forecasted for the year. housing, a little bit of a concern here from economists that the housing market is ahead of itself, but, still, bullish on the u.s. economy, so explain that. >> yes, thanks, cheryl. we are bullish on the u.s. economy, housing continues to come back. you saw the numbers today, but, you know, it's still 15, 20, 25%, spending where you are, in the u.s. 30% where it was at its peak. you know, household formation in the last few years has been delayed because of americans deciding to live with their parents, essentially, but population growth continues. bullish on the housing market driving quite of other consumer
3:10pm
demand. cheryl: are you changing your asset allocation mix now? is that something you're in the midst of doing, especially on a day like today and yesterday when there seems to be a lot of money moving around, not a lot of new money, but money moving nonetheless. >> we're not changing our allocation. it's a bottom-up investor, a u.s. equity focus, and what we noticed it the past eight years, most investors flee u.s. equities to go to cash and bonds, some of the money might be coming back into the market, and that actually would be a significant catalyst for significantly higher equity evaluations. cheryl: you have bullish targets for the year. you say we got a good 10% to run here with maybe, like, a 5% pullback. do you think we're getting that pullback now as you look at the trajectory the rest of the year? >> well, it's true, near term, the markets had a terrific run, since november of last year, it
3:11pm
would bb, i think, acceptable to a pullback, and cypress would be an excuse for that, but i think it's a strong buying opportunity. we've had several in the last few year, and, actually, the correct decision in the last year has been to increase u.s. equity allocations for most investors. cheryl: what about international? there's a small piece of the pie, the asset allocation circle, a small piece of the pie is international investments. i mean, do you think that's the strategy that backfires in a year when we see, again, more growth in china? seeing growth in india, growth in other parts of africa. is that a strategy? would you change your mind about that? >> well, there's a big difference between our optimism for, in particular, emerging market economies, where we see improving growth like brazil and china this year, but a big difference between how the economies do and how we believe that the markets will do there. in particular, because of the high growth for many years, many of the industries in china, for
3:12pm
example, they just have too much competition, too many companies. there's a sorting out process that has to occur, a big compression in revenue growth rates and margins. we think there's a lot of room for bottom's up stock picking in emerging markets, but corks about overall products because of the current path, but we like the economies there. i mean, we think the best way is to play emerging market growth are the u.s. multinationals that did an excellent job growing overseas. cheryl: okay. i know you have stock picks you brought. one is apple, which is certainly what you talk about large cap multinational play. petroleum corporation. you say this is an undervalued name that we need to look at. what makes it undervalued in your opinion? >> yes. so they are a shale oil company, doing a great job of growing production, grew 20% last year. of course, the energy revolution in the u.s. is really one of the biggest surprises, i think, of
3:13pm
the last six or seven years. our dependence on imported oil has fallen from 60% to just over 30% which is the lowest in 25 years. they are one of the companies that helped create that situation. what we think today is that investors are not focused on this exeen's future growth prospects, in particular, they are exploring other fields where they have a lot of resources, but are yet unproven. we are fundamental analysts who believe the early results from the fields show that they'll be very productive, and we like the stock a lot, 60% under valued. cheryl: really? that's big. on apple, you say there's earnings growth to be had at apple. where's that going to come from? >> right. well, i watch the show avidly as well, and the last commentator did a got job, alonggwith the cell phone highlighting apple's success. we agree. apple is extraordinarily cheap. it fell too far.
3:14pm
i know one thing, one of the reasons the stock came down so much is it was the top candidates for tax gain selling last year when people were afraid of capital gain rate changes affecting their portfolios, and at this point, it's clearly undervalued. terrific cash flow, and we think a lot of opportunity. we're strong buyer of apple. cheryl: 451. not 700, 45 # 1. dan, thank you very much for those picks, and, of course, for your commentary on everything. a closing bell ringing right now, oh, we've got 48 minutes to go. coming up later in the hour, this is going to be good. palo alto network ceo is going to tell us why the company's next generation's fire wall will win the cyber security race. big money going into that sector right now, and the supreme court decision that's a big one for anyone in the retail market. details ahead. ♪
3:15pm
mclaughlin vative investor. but that doesn't mean i don't want to make money. i love making money. i try to be smart with my investments. i also try to keep my costs down. what's your plan? ishares. low cost and tax efficient. find out why nine out of ten large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal.
3:16pm
3:17pm
3:18pm
♪ cheryl: power mover of the hour is starting 20 medical 13 off on
3:19pm
the wrong foot. dsw, shares down actually 7% now, $4.50. retailer expected fourth quarter earnings and can want give a confident estimate on the full mere. this is a big problem. this is a columbus, ohio based company. i can't talk today. they are saying sales in the first week of 20 # 13, the year to date chart shows the story, and the pressure on the chart, a stock to watch, and, also, charles payne and i share our favorite stock, crocs, and they open a lot of stores. charles, i'm curious what you think. going to nicole at the new york stock exchange, the dow just turning positive, like magic, nicole. >> that's right, headlines from abroad move the market into positive territory, and the traders talking about it, and
3:20pm
that's why you have the pop. construction stocks, obviously, something that comes from this morning's number from the housing starts, the .8%, a great number there. we're seeing that not only the home builders, we're seeing construction related stocks doing well, so you see trex, owens, eagle, all doing well, talk about decking, railers, lumber, plumbing fixture, all doing well. okay, i'll give you the cypress headlines. what we are hering now is the ecb says they will provide liquidity to cypress within the existing rules according to bloomberg and other headlines we are getting. look at the markets and the intraday, it's evident that just popped our markets immediately, this, on the same day where we heard the vote went and rejected taxing those deposit money to
3:21pm
move forward. we hear the ecb reaffirm the the commitment to provide liquidity to cypress. the introday rules. we just went positive, and, oh, that's the thing that can move the market around, cheryl. back to you. cheryl: a volatile day. a 140 point swing here, plus, nicole. all right, thank you very much. we'll, of course, stay on the markets throughout the next 40 minutes, and then after the bell as well. well, the supreme court is siding with resellers today determining that companies lose control of future purchases after the first sale. this decision, a big win, for secondhand suppliers from the big online players to the mom and pop consignment shops. rich edson is following this story from washington, rich? >> well, cheryl, a win for the secondary marketplaces like ebay and overstock.com. if you buy a product made overseas, you can resell it in the united states. this originates to a case, a
3:22pm
university student brought textbooks from overseas, priced lower than in the united states, sold them for more, and the supreme court says they do not ban that selling. a secondary market cites libraries and districters say the decision is cementing the right of consumers and organizations to sell, lend, and give away goods that they bought and own regardless of where those goods were made. they argue a different court decision mean companies can ban resale of any products manufactured overseas like electronics. in their dissent, justices ginsberg, scalia, and denty write, cementing the right of consumers and organizations and protect them against the unauthorized importation of low priced foreign made copies of their copyrighted works. this morning at the supreme court, publishers lose businesses that take a cut of
3:23pm
resales win. back to you. cheryl: rich, thank you. closing bell ringing in 40 minutes from now. dow down six points. it's going to be one of those last hours of trading. we don't know what's going to happen. it has been a rocky row for herbal life. charlie has the latest scoop on the company coming up next. there it is. ♪
3:24pm
thanyou orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. you're history.
3:25pm
instead of looking behind... delta is looki beyond. 80 tusand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. you are gonna need a wingman. and my cash back keeps the party going. but my airline miles take it worldwide. [ male announcer ] it shouldn't be this hard. with creditcards.com, it's easy to search hundreds of cards and apply online. creditcards.com. ♪ [ male announcer ] every car we build must make aenaline pump and pulses quicken.
3:26pm
♪ to he you not just stay alive... but feel alive. the c-class is no exception. it's a mercedes-benz, through and through. see your authorized mercedes-benz aler for exceptional offers through mercedes-benz financial services.
3:27pm
♪ cheryl: here's your fox business market check. look at starbucks now. they are purchasing its first coffee farm, a 600-acre farm in coast costa rica and plans to use it for growing methods and get rid of a fungal disease that is vexing the industry.
3:28pm
the company perks the coffee from latin america. they are not ruling out future farming acquisitions. it's down not even half a percent on shares of starbucks. there's a phrase. keep your friends close, but enemies closer. that may be the best way to explain herbal life's predictment towards karl icahn now that he took a stake in the product's company. charlie has more on the story. >> exclusive new details. what people tell the fox business network, people close to herbal life, is that the executives there, senior executives, are sort of worried about icahn's support of the company, carl is a corporate raider. they worry does the guy, now the largest single shareholder, does he take it all over, bring it private, rid management? what are the intentions. as you follow him on this, he's
3:29pm
not saying much other than general support of the company, a company attacked by his arch rival in the company as a period mid scheme, but, clearly, people inside herbal life are worried about this. they are also worried about the perception that they are worried, which is why they just issued a statement exclusive to the fox business network in support of carl icahn's investment, they tell us that they stand behind the investor, there's the statement. they stand behind the investment in the company and appreciates his shared views on the inherent value of the herbal life's products and future prospects. that's what they issued us now in reaction to what we understand is pretty growing discontent inside herbal life about what exactly carl icahnments -- wants for them. the last thing you want is your fate in someone else's hands. herbal life was attacked by bill, shares dropped dramatically to the low.
3:30pm
you see it there. it's regained that, obviously, not all, but a lot. bill's short position betting that he should be lower, but he thinks it should be 0 or $2. it made up some of that, but why he did is because the carl, but, you know, this guy may not be the guy you want on your side. people forget who he is. he's a corporate raider. you know, now this is a derogatory term, but the opponents call him a green mailer. someone who comes in, demands you buy them out at a higher price as he moves the stock out so you get rid of him and his presence on the board. i have to point out that carl icahn has two board seats on herbal life. the notion of green mailing him, what he wants to do with the company, is clearly something, from what we understand, is on the minds of herbal life executives. i have to point it out, i'm not calling him a green mailer, but i'm saying that's the bad part
3:31pm
of the reputation. remember, he was involved in major takeovers during and some of the lbos during the 1980s, big players, worth probably -- cheryl: still a big player. >> still a big player. when you open -- they needed a white knight, you know, quote-on quote, white knight. he's a conflicted knight when you look at the record. people in herbal life know that. they are worried about it. they are worried about the impression on, you know, they don't want to get the guy mad, which is why they issued the statement to fox business. it's an odd statement. why defend, you know, a guy that gave, you know, is basically helping bail you out amid the attack by bill, but, you know, it's like you protest too much, when you do this, there's a reason. the reason why is because they know they made their deal with the devil. they can't get him mad, but they clearly, really feel
3:32pm
uncomfortable with him in the tent. herbal life's life is very much complicated, not just by bill on the short side, he says this is a pyramid scheme, by by carl taking this very big position. it's 15%, i think it's more like 15.5 #%, nearly a 16%, there's bill, the short seller says it's a pyramid scheme. they have been complicated by carl icahn's investment. it's fattening. we'll follow the story. you know, one of the great things about herbal life, you play it as a stock, there's ups and downs to it, but there's an amazing drama between ackman, icahn, and herbal life and ackman, and icahn and herbal life. they don't like them in the tent. cheryl: we need a chart. >> a mob chart; right? it's kind of like the mob. cheryl: charlie thanks very much, a good story. >> thank you.
3:33pm
cheryl: we have 15 minutes, and we were positive 15 minutes ago, anything can happen. there's something happening overseas. that was treasury secretary jack lew meeting with china's president today discussing ramping up cybersecurity in the united states and stopping the threat. competition is hitting up, though, among the security providers. here's the good twist. we'll talk to the chairman and ceo of palo alto networks, mark mclaughlin, a fox business exclusive interview, and how he is building the next generation of firewalls, which we need. ♪ l stations come over to mission a for a final go.
3:34pm
this is for real this time step seven point two one two. rify and lock.
3:35pm
command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siens. answers. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only natnal lets you choose any car in the aisle... and go. you can even take a full-size r above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.
3:36pm
3:37pm
3:38pm
adam: i am adam shapiro which are fox business brief. adobe systems in the spotlight after hours when the company reports first-quarter earnings. investors expecting them to continue to progress from approved software to subscription services. and investing $130 million building the first factory in china as part of a plan to move production closer to asia. the fastest growing market. construction will begin next year and will be fully operational come 2017. home prices helping homeowners bounced back from underwater mortgages in the fourth quarter according to the housing market improving from a combination of fewer foreclosures, tighter supplies and higher prices. we continue our "countdown to the closing bell" now with cheryl casone. cheryl: investors are grabbing a slice of one pizza and washing it down with some beer and wine.
3:39pm
nicole petallides with a case of three companies hitting new record highs today. nicole: that is right. take a look at constellation brands down slightly, half a percent. before it hit a lifetime high today. two other names we are focusing on our sam, sam adams beer company, and also keeping ni on papa john's. they have hit all-time highs. and we can talk about the gains they have seen over the last 52 weeks, one year. up 107% for constellation brands. also, papa john's and boston beer gaining more than 60% in the last 52 weeks. very nice. back to you. cheryl: thank you very much, big
3:40pm
performers on the screen, thank you, nicole. as the united states beefs up the cyber security, competition is heating up to find the best way to ward off hackers. palo alto networks joining me now with a fox business exclusive when we have news of cyber security. let's talk about this meeting. the new treasury secretary meets with chinese officials talking about cyber security. how big of a threat do you think the chinese truly are? >> larger than any other single country or actor. there are several very focused, very well-funded and they're used the technology and their wherewithal to steal things, break into you get your passwords, corporate espionage. cheryl: do you get a sense the u.s. government is the group best to fight cyber security, or is it companies like yours? private companies but maybe this is a better way.
3:41pm
speaker to be a combination of public and private. i don't think any country can do it alone and no single company can do it alone. cheryl: do you have a sense of what companies are most at risk? you're covering businesses, consumers as well, but you have a sense of which are the biggest targets right now for cyber attacks? >> it depends on who is attacking. if you're just after money, banks, obviously. if you're looking to disrupt things coming across to the energy sector. cheryl: the telecom association has blocked an effort to issue cyber security recommendations going back t the government section of this and how they can play into fighting cyber security. does that kind of tell you that we are further away than we want to be right now, sort of protecting the networks of ban banks, of government websites, etc.? >> there's a lot of focus of getting it, lots of politics involved, and there will be quite some time.
3:42pm
a lot of money at stake in all of this. cheryl: explain what that is, this is something you have been developing. when it comes to the competition, there is no competition, you really are kind of taking over the space with this next generation of firewall. >> it is the only device that sees all the traffic coming in and all the traffic going out of your network and the only device that can make all applications safe on your network. cheryl: again, the selling of the firewall, the client base you have, how is the traffic based growing? has your phone but bringing more because of what has happened? >> because of cyber security in general and what the focus is right now, everybody is aware this is probably one of the top three things right now, and for us that is resulting in adding a lot of customers.
3:43pm
cheryl: we're looking at your ipo, little bit of it yet. there may be some renewed interest in your stock, if you will. we haven't talked about mobile security. that is just as big of a threat as network security desktop security. is that something you can see the company moving into? >> mobile is another way for applications to get on the network. and they way they are bringing their devices to the network. what our device does is protect all of the applications whether it is the laptop, desktop, tablet. cheryl: if you look at the numbers and go back to 2008 and forward, look at the amount of money spent on cyber security, a multibillion dollars figure. i am curious, we have seen so much m&a activity. are you open to being a larger company? would that be a better way for your shareholders to profit? >> we have a $10 billion market
3:44pm
opportunity, fantastic technology, swift taken a go at it. cheryl: would you be buying smaller companies that have more of a niche market with mobile security? maybe more international exposure that you need. >> we are at a nice place for the roadmap allows us to address that opportunity, if we see a smaller company, we would be interested. cheryl: where do you see the company in 10 years? palo alto networks is one of the true survivors. when it comes to technology and global security if you will. where do you see the company in 10 years? >> our goal is the leading independent security provider in the world. cheryl: i love the word independent. good job. >> that is our vision. cheryl: mark mclaughlin, we will be watching the company to see where you go next.
3:45pm
cyber security is on the minds of many of us with all the headlines coming out of china. we have had so many websites hacked recently. thank you for coming in. mark mclaughlin, palo alto networks chairman and ceo. 18 minutes to go. american and u.s. airlines are in the hot seat in d.c. today to testify on behalf of their merger. could the new portfolio help the merger? the details coming up. breathe, and how that feels. copd includes chronic bronchitis and emphysema. spiriva helps ntrol my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups.
3:46pm
spiriva is the only once-daily inhaled copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tone ells, you get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd spiriva helps me breathe better. (blowing sou) ask your doctor about spiriva. you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two wordfor you -- re-wards. ♪
3:47pm
there's got to be better cards than this. [ male announcer ] there's a better way with creditcards.com. compare hundreds of cards from all the major banks to find the one that's right for you. it's simple. search, compare, and apply at creditcards.com. first round's on me.
3:48pm
3:49pm
3:50pm
cheryl: here is your fox business market check. the dow was off of session lows off of session lows, but again we are still in the red for just 10 points, 13 minutes to go, you never know. again, a lot can change. look at the vix, this is the second day we have seen a jump in the volatility index. yesterday up 20%, so what does that tell you? more nervousness in the market today and yesterday as well. the dow transports hit an all-time high but they have been moving slightly lower since that market was hit earlier in the trading session. here is the question for all of you, should you be buying the names now? let's bring in ceo of hodges capital with a look at all of these. we have to start with what is happening in washington with u.s. airways, the airline sector
3:51pm
hot or not when it comes to buying into the sector right now. >> we like the airline sectors for a couple of years now. i am the first to realize we're in the minority. you ask 100 people, 100 investors what they like to buy an airline, 99 would say no. you rent them, you trade them, but you don't own them. they have changed the business model to where they are running much smaller as businesses, profit centers now charging for everything. $15 on the way down for wifi. they are making money in places they never haae, so there has been an actual change in the business models for the airline. cheryl: you are right, they have changed. going in the union's favor. we were talking about this in the commercial break, we have seen a good amount of flows in
3:52pm
particular in january of this year, billions into equity markets, but there still seems to be a lot of cash on the sidelines right now, why is that big money still not jumping in and participating in the market? >> people are very fearful since it has made a move. 400 billion has come out of domestic equities. we have had our first inflow, $19 billion range. we feel we are in one out in the first inning. it will not be straight back up, it will take rising interest rates to get the majority of the money to come back into the market but that will happen the next three or four years. cheryl: you have watched etf as most of us frankly don't want to have to sit and pick stocks. the more popular they get, the better it is to pick stocks, so how do you reason that?
3:53pm
>> it is mindless investment, buying a basket of stocks and if you have 25 stocks in the banking business, let's say, you will have a very good banking stock with zero toxic assets and one over here with a lot, and yet they trade 90% correlation. if you're doing fundamental research and you know what these companies are worth, you can find inefficiencies in the market. etf has been going solid in the past decade. cheryl: is it goo book value, p, earnings? all of the above? >> all of the above. if the stocks of all trade alike on the upside or the downside, you can identify it and we have a lot of the companies trade below intrinsic value. we knew that shutting down the businesses what it would be
3:54pm
worth a lot of those trading below that. we can find those inefficiencies in the market. cheryl: u.s. airways, one of the many, tal talking about that ear in the show. a broad-based, specifically talk about that. that is one of your top picks right now. >> the energy business is equivalent to the industrial revolution. the next 10 years could be fantastic. our favorite area is the deepwater drillers. very low multiples, but yet we're going to see a rig shortage and as we find more and more, technology allows us to find more and more deposits in the gulf, in the deep waters that weren't even possible five and 10 years ago these companies will do extremely well and they
3:55pm
will trade up. cheryl: i mentioned one of your top holdings, but another specialty we want to bring to your attention, shoe carnival. >> not a big name. hard to find growth in this industry, but a little company basically serves the family shoe channel, so to speak. but they have 350 stores and we see that growing to about 700 stores. it'll be a really good growth vehicle, but shoes are one thing that we noticed aren't really sensitive to the economy, people continue to buy shoes and around 21 probably earning close to $2 next year looks like a very inexpensive stock that will have some growth. cheryl: always good to talk to you, thank you for coming up from dallas. another favorite person of mine. the closing bell will ring,
3:56pm
seven minutes to go. the dow positive again. it has been one of those days. but the s&p 500, take a look at this 120 points away from the record closing high. some strength in the index today. we will show you where that is in particular after a short break. [ indistinct shouting ]
3:57pm
3:58pm
3:59pm
♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all onhinkorswim from td ameritrade. ♪ cheryl: the consumer staples sector is the leading sector in the s&p 500 and one of the two sectors in the green today. there is a change for you. hanging onto early gains, investors looking for safety today, looking at the dow, looking at treasuries t